Legislation

As the Consumer Financial Protection Bureau (CFPB) has taken what seem to be positive steps towards implementing long-anticipated rulemaking on small business loan data collection under Director Kathy Kraninger, the agency has faced no shortage of resistance from the financial industry.

A piece of legislation introduced by Rep. Roger Williams (R-Texas) seeks to eliminate the section requiring the rulemaking in the first place.

Find out more details about the legislation.

Numerous federal financial agencies likely will be operational to begin 2020 thanks to the adoption of a $13.06 billion appropriations package outlined in the House’s FY 2020 spending bill.

The spending package provides more federal funding than the FY 2019 enacted level and more than the Trump administration’s budget request.

Find out more details about the spending package.

There is bipartisan support for legislation that would provide banks and credit unions a legal safe harbor from repercussions for financing legitimate marijuana-related businesses, but the measure continues to face hesitation in the Senate Banking Committee.

Having previously acknowledged the merits of arguments for and against creating such a precedent, Committee Chairman Mike Crapo (R-Idaho) leaned toward the latter in a recent statement regarding the Secure and Fair Enforcement (SAFE) Banking Act.

Learn more details about Crapo’s views on the matter.

Financial industry advocates and former regulators urged the Senate Commerce Committee to seriously consider proposals for improving consumer data privacy regulations before and during its recent hearing examining consumer data privacy proposals.

Two former Federal Trade Commission officials called on Congress to grant regulators more enforcement authority with regard to data privacy.

Learn more recommendations made during the hearing.

The Office of the Inspector General (IG) for the National Credit Union Administration (NCUA) stated that it is conducting an audit of the agency’s examination processes in its latest semiannual report to Congress with relation to assessing third-party risks.

Notably, NCUA is the only federal prudential financial agency that lacks examination authority over third-party vendors used by the entities it supervises – a fact a piece of draft legislation seeks to change.

Learn more about the audit and what it says about the perceived importance of third-party oversight at credit unions.

Newly introduced Senate legislation would exempt loans to veteran-owned businesses from the member business lending (MBL) cap, which limits the amount of total assets credit unions can devote to business lending.

The bipartisan measure bears the same name as its House counterpart and, likewise, has received strong support from the credit union industry.

Learn more about the aim of the legislation.

New legislation introduced in the Senate aims to address industry concerns about a so-called “loophole” in federal standards that makes fintechs eligible for industrial loan company (ILC) charters.

The bill touches on a long held point of contention for community banking advocates. It proposes to draw a bright line separating banking and commerce in the name of ensuring the safety and soundness of the banking industry.

Learn more about the legislation and the issue it seeks to address.

Legislation introduced in the House and Senate seeks to protect all consumers from high interest rates often associated with payday and car-title loans.

The Veterans and Consumers Fair Credit Act would extend the Military Lending Act’s 36 percent APR interest rate cap on both loan types to cover all Americans. 

Find out more details about the measure.

The Government Accountability Office (GAO) recently found that three guidance documents issued by the Federal Reserve from as far back as 2011 – two of which pertain to large bank supervision – have the force and effect of rules, and therefore are eligible for repeal under the Congressional Review Act (CRA).

GAO’s determination comes shortly following two White House directives stating that guidance may not have the force and effect of a rule.

Get a refresher on what we’ve learned in the past about CRA repeal rules.

Community banks and credit unions are applauding the House’s passage of a bill updating “beneficial ownership” disclosure requirements under federal laws pertaining to Bank Secrecy Act/anti-money laundering rules. 

Trade associations representing community banks and credit unions wrote to House leaders ahead of the vote to reiterate their support for the legislation.

Find out more about the legislation and the industry’s take on its potential impact.